Mitigating variance amplification under stochastic lead-time: The proportional control approach
dc.contributor.author | Wang, X | |
dc.contributor.author | Disney, SM | |
dc.date.accessioned | 2019-09-10T09:59:38Z | |
dc.date.issued | 2016-06-11 | |
dc.description.abstract | Logistic volatility is a significant contributor to supply chain inefficiency. In this paper we investigate the amplification of order and inventory fluctuations in a state-space supply chain model with stochastic lead-time, general auto-correlated demand and a proportional order-up-to replenishment policy. We identify the exact distribution functions of the orders and the inventory levels. We give conditions for the ability of proportional control mechanism to simultaneously reduce inventory and order variances. For AR(2) and ARMA(1,1) demand, we show that both variances can be lowered together under the proportional order-up-to policy. Simulation with real demand and lead-time data also confirms a cost benefit exists. | en_GB |
dc.identifier.citation | Vol. 256 (1), pp. 151 - 162 | en_GB |
dc.identifier.doi | 10.1016/j.ejor.2016.06.010 | |
dc.identifier.uri | http://hdl.handle.net/10871/38633 | |
dc.language.iso | en | en_GB |
dc.publisher | Elsevier | en_GB |
dc.rights | © 2016. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/ | en_GB |
dc.subject | Inventory | en_GB |
dc.subject | Bullwhip effect | en_GB |
dc.subject | Stochastic lead-time | en_GB |
dc.subject | Demand correlation | en_GB |
dc.title | Mitigating variance amplification under stochastic lead-time: The proportional control approach | en_GB |
dc.type | Article | en_GB |
dc.date.available | 2019-09-10T09:59:38Z | |
dc.identifier.issn | 0377-2217 | |
dc.description | This is the author accepted manuscript. The final version is available from Elsevier via the DOI in this record | en_GB |
dc.identifier.journal | European Journal of Operational Research | en_GB |
dc.rights.uri | https://creativecommons.org/licenses/by-nc-nd/4.0/ | en_GB |
dcterms.dateAccepted | 2016-06-06 | |
rioxxterms.version | AM | en_GB |
rioxxterms.licenseref.startdate | 2016-06-06 | |
rioxxterms.type | Journal Article/Review | en_GB |
refterms.dateFCD | 2019-09-10T09:58:05Z | |
refterms.versionFCD | AM | |
refterms.dateFOA | 2019-09-10T09:59:40Z | |
refterms.panel | C | en_GB |
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Except where otherwise noted, this item's licence is described as © 2016. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/